This image is floating around the internet along with rumors that Apple is ready to unveil a much larger version of its iPod Touch that might be called MediaPad. Apparently, it has a 6-inch HD touchscreen and will have cellular wireless connectivity. So people are writing about this thing as a Kindle-killer. Apple is also rumored to be preparing an ebook reader application that will allow book purchases through the iTunes store.
I think this has been coming for a while and I am almost certain that Steve Jobs will implement the first serious major competition for Amazon.